IRENA - World Energy Transition Outlook 2023

IRENA's World Energy Transition Outlook 2023 report highlights that the energy transition is not progressing as anticipated. The COVID-19 pandemic and the Ukraine crisis have made it even more challenging to achieve the necessary course-correction. IRENA's 1.5°C pathway target requires a cumulative investment of USD 150 trillion by 2050, with around USD 5 trillion invested annually. Current pledges and plans fall short, resulting in an emissions gap of 16 gigatonnes (Gt) by 2050. Furthermore, IRENA's Planned Energy Scenario projects an emissions gap of 35 Gt by 2050, requiring comprehensive action to accelerate the transition. The report calls for a change in the volume and type of investments, with an extra USD 47 trillion investment required by 2050 to achieve the 1.5°C target. Of the USD 44 trillion investment required by 2030, at least 80% should be allocated to energy transition technologies. This highlights the need for bold, transformative measures that reflect the urgency of the situation, with policies, regulations, and sufficient funding to support detailed national strategies and plans.